Abstract:
The paper looks into joint determination of corruption and development where
there is hierarchial bureaucratic setup; tier one-bureaucrat and tier two bureaucrats.
Corruption happens at two level once when tier one bureaucrat collude with
households for tax evasion and another when tier one and tier two bureaucrats collude
to hide corruption.. The paper determines that at high level of corruption, there is low
development and at low incidence of corruption, there is high development.
Key words: Corruption, Tax Evasion, Economics Growth.
